flows can have different rates of return; and (iii) an increase in inflation raises asset prices, lowers their returns, and … widens the rate-of-return differences between assets. On the normative side we show that there is a range of inflation rates …

This paper explores inflation dynamics and monetary policy in Bolivia. Bolivia's monetary policy framework has been … effective in stabilizing inflation in recent times. This has been a challenging task given high price volatility of key consumer … framework has contributed to the stabilization of inflation, with effective transmission through the bank lending channel, while …

-financed consumer boom that house price inflation has generated. In the process it draws attention to the increasingly differentiated … of inflation that exclude mortgage interest repayments and, in the UK at least, to the covert repoliticisation of … inflation poor, house price inflation good’ …

This paper investigates the welfare effects of inflation in economies with search frictions and menu costs. We first … condition under which price stability is optimal and a condition under which positive inflation is desirable. We relate these … inflation rate is negative for all our numerical examples. A deviation from the Friedman rule can be optimal depending on the …

, for example. I show that fixed periods underestimate the welfare cost of inflation. I use a model in which agents choose … inflation increases from 0.1 percent of income with fixed periods to 1 percent with optimal periods. The results are robust to …

money and inflation. When analysing the full sample of countries we find a strong positive relation between the long …-run inflation and money growth rate. The relation is not, however, proportional. The strong link between inflation and money growth … is almost wholly due to the presence of high (or hyper-) inflation countries in the sample. The relationship between …

This paper analyzes the relationship among inflation, dollarization, financial intermediation, and real activity …. Empirical evidence suggests non-linearity in the effects of inflation on financial intermediation and real activity, i.e., the … existence of an inflation threshold. Evidence also suggests that one way in which inflation affects financial intermediation in …

This paper provides new evidence on a long-standing question asked by Shiller (1997): Why do we dislike inflation? I … inflation and their reactions to it. The predominant reason for people's aversion to inflation is the widespread belief that it …-income groups. Inflation also provokes stress, emotional responses, and a sense of inequity, as the wages of high-income individuals …

hyperbolic discounting leads to inflation having significant long-run effects on real variables. …

inflation and a permanent reduction in the level of unemployment. In short, we derive a microfounded long-run downward …